Reduction in the Goods and Services Tax for room air conditioners (RAC) is set to lower consumer prices up to Rs3,000, beyond the anticipated cost increase from new energy efficiency norms, a report said on Thursday.

The GST reduction on sub-2-tonne RACs is likely to bring down prices by approximately 6–8 per cent, translating into a saving of around Rs. 2,000–3,000 per unit, offering significant incentive for buyers, a report from ICRA said.

The GST rate on RACs was slashed from 28 per cent to 18 per cent as part of GST 2.0 reforms.